FDA Suspends Zepto’s Dharavi Warehouse Licence for Food Safety Violations

FDA Suspends Zepto’s Dharavi Warehouse Licence for Food Safety Violations. On June 2, 2025, the Food and Drug Administration (FDA) of Maharashtra took decisive action against Kiranakart Technologies Pvt. Ltd., the parent company of the popular quick-commerce platform Zepto. The FDA suspended Zepto’s food licence for its Dharavi warehouse, citing serious violations of food safety and hygiene norms. This article explains the entire incident, the legal provisions invoked, the nature of the violations, and the consequences for Zepto, all in simple and clear English.
The recent suspension of Zepto's Dharavi warehouse license by the Maharashtra FDA highlights the importance of adhering to food safety regulations. The inspection uncovered severe violations, including the presence of expired food items, fungal growth, and unsanitary storage conditions, posing significant health risks to consumers. FSSAI Compliance with the Food Safety and Standards Authority of India (FSSAI) guidelines is essential for all food business operators. It ensures that food products meet stringent safety and quality standards, thereby safeguarding public health and maintaining consumer trust. For businesses seeking assistance in navigating FSSAI compliance requirements, Compliance Calendar LLP offers expert FSSAI consultancy services. Their team can guide you through the registration, licensing, and compliance processes to ensure your operations meet all necessary food safety standards
Background of the Inspection by FDA
The surprise inspection was carried out on May 31, 2025, under the direction of the Minister of State for FDA, Yogesh Kadam. Food safety officer Ram Bodke, supervised by Joint Commissioner (Food) Mangesh Mane, led the investigation. The FDA officials conducted this inspection to ensure that all food storage and handling at the Dharavi facility met the necessary safety standards. This type of surprise inspection helps uncover hidden risks that can affect consumer health.
Findings of the FDA Inspection
The FDA inspection report revealed multiple severe violations. Inspectors found food items visibly affected by fungal growth, which makes these products unsafe for consumption. Food stored near stagnant, clogged water created a breeding ground for pests, increasing the risk of contamination. Cold storage units were also not functioning at the required temperature, endangering the freshness and safety of perishable goods. The facility's floors were damp, dirty, and littered with food products stored directly on the ground, which is a clear violation of hygiene protocols.
Expired Products Found in Stock
Another alarming discovery was the presence of expired food items mixed with fresh inventory. This failure to segregate expired goods violates basic principles of shelf-life management and poses a serious risk to consumers. Expired food can carry harmful bacteria and toxins, and selling or storing them violates food safety laws. The FDA's discovery of such practices pointed to gross negligence by the warehouse management.
Legal Action Taken Against Zepto
Following the inspection, Assistant Commissioner (Food) Anupamaa Balasaheb Patil issued an immediate suspension order for the facility's food business licence. The action was taken under Section 32(3) of the Food Safety and Standards Act, 2006, and Regulation 2.1.8(4) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011. These provisions empower the authorities to suspend or cancel licences where violations threaten public health.
What is Section 32(3) of the Food Safety Act?
Section 32(3) of the Food Safety and Standards Act, 2006 allows the authorities to suspend a licence if the food business operator fails to comply with the conditions set under the law. This section is critical for enforcing accountability, as it empowers regulators to act swiftly in cases where public health is at stake. The suspension stays in effect until the food business operator takes corrective measures and meets all compliance standards.
Importance of Regulation 2.1.8(4)
Regulation 2.1.8(4) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 focuses on the compliance obligations of licensed food businesses. It sets out the responsibilities of businesses to maintain hygienic practices, ensure proper storage, and uphold all safety standards. Violation of these regulations can lead to licence suspension, legal penalties, or even permanent closure of the facility.
Zepto’s Response to the Suspension
In response to the FDA's action, Zepto issued a statement emphasizing its commitment to food safety and hygiene. A Zepto spokesperson said, "At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable. We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance." This shows that the company is taking the matter seriously and is working to rectify the identified lapses.
Corrective Measures Being Taken by Zepto
Zepto has promised to take all necessary corrective actions to address the violations identified by the FDA. This includes deep-cleaning the warehouse, ensuring proper temperature control in cold storage, discarding expired and contaminated products, and training staff on food safety protocols. The company is also revisiting its inventory management practices to avoid similar issues in the future.
When Will Zepto Resume Operations?
The FDA has made it clear that the licence will remain suspended until the company achieves full compliance and receives formal clearance from the licensing authority. This means Zepto must demonstrate that it has resolved all the safety and hygiene issues before it can restart operations at the Dharavi warehouse. The timeline will depend on how quickly Zepto can implement the required changes and satisfy the authorities.
Consumer Health and Public Safety at the Forefront
FDA Commissioner Rajesh Narvekar, IAS, stated, "Protecting consumer health remains our top priority. We will continue regular inspections and take strict action wherever violations are found." This statement highlights the FDA's focus on safeguarding public health by ensuring that food businesses meet all legal and safety requirements. Consumers rely on regulatory bodies like the FDA to ensure that the food they buy is safe and free from contamination.
Implications for Zepto’s Reputation
While Zepto has responded proactively, the suspension of its food licence at one of its major warehouses may affect its brand reputation. Quick-commerce businesses like Zepto depend heavily on consumer trust, especially when it comes to food items. Any lapse in safety can lead to loss of customer confidence, refusal media coverage, and potential financial losses. Zepto must act swiftly to restore its credibility.
Impact on Zepto’s Supply Chain
The Dharavi warehouse plays a crucial role in Zepto’s Mumbai operations. With its licence suspended, the company will face disruptions in its supply chain, affecting order fulfilment, delivery times, and overall customer experience. Zepto will need to find alternative supply routes or rely on other warehouses to meet demand until the Dharavi facility resumes operations.
Legal Obligations Under the Food Safety Act
Every food business operator in India is legally bound to comply with the Food Safety and Standards Act, 2006. This includes maintaining hygiene, ensuring proper storage, segregating expired items, and following cold storage requirements. Failure to comply can result in penalties, suspension, or cancellation of the food business licence. These legal obligations are designed to protect consumers and maintain food quality standards across the industry.
Lessons for Other Food Businesses
The FDA’s action against Zepto serves as a warning to other food businesses. Regular internal audits, proper staff training, and strict adherence to safety norms are essential to avoid regulatory action. Businesses must understand that shortcuts in food safety can lead to legal, financial, and reputational damage. The case of Zepto highlights the importance of building a strong compliance culture.
Future Inspections and Enforcement
The FDA has indicated that it will continue to conduct regular inspections across food businesses in Maharashtra. This proactive approach ensures that businesses remain vigilant and do not become complacent about food safety. For companies like Zepto, regular inspections are an opportunity to demonstrate their commitment to maintaining high standards and rebuilding trust.
Conclusion
The suspension of Zepto's Dharavi warehouse licence is a clear reminder that food safety violations carry serious consequences. From visible fungal growth on food items to improper cold storage and the presence of expired products, the violations uncovered by the FDA posed a direct risk to public health. Zepto’s swift response and cooperation with the authorities show its intention to fix these issues, but the path to regaining its licence will require full compliance with regulatory requirements.
As the FDA continues its enforcement efforts, food businesses across the country must prioritize safety and hygiene to protect both their customers and their reputation. The incident serves as an important lesson on the need for constant vigilance, proper training, and adherence to legal standards. Only by doing so can businesses ensure they meet their obligations under the Food Safety and Standards Act and provide safe, high-quality food to consumers.
FAQs
Q1. Why did the FDA suspend Zepto’s Dharavi warehouse licence?
Ans. The FDA suspended Zepto’s Dharavi warehouse licence due to serious food safety and hygiene violations, including fungal growth on food items, improper cold storage, and the presence of expired products. These conditions posed a direct risk to consumer health.
Q2. Under which law was Zepto’s licence suspended?
Ans. The licence was suspended under Section 32(3) of the Food Safety and Standards Act, 2006, and Regulation 2.1.8(4) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011. These legal provisions empower the FDA to act against violations.
Q3. What corrective actions is Zepto taking?
Ans. Zepto is conducting an internal review, discarding expired and contaminated products, deep cleaning its warehouse, fixing cold storage issues, and providing staff training on food safety practices. The company is also working closely with authorities to regain compliance.
Q4. How long will the licence suspension last?
Ans. The suspension will remain in effect until Zepto fully complies with all food safety norms and receives clearance from the licensing authority. The timeline depends on how quickly Zepto can resolve the violations.
Q5. What impact will this have on Zepto’s operations?
Ans. The suspension affects Zepto’s supply chain in Mumbai, potentially causing delays in order fulfilment and delivery. The company may need to reroute operations through other warehouses to continue serving customers.
Q6. How does the FDA ensure food safety in India?
Ans. The FDA conducts regular inspections, surprise checks, and enforces compliance with the Food Safety and Standards Act, 2006. It has the authority to suspend or cancel licences if businesses fail to meet safety requirements.
Q7. Why is food safety so important for businesses?
Ans.  Maintaining food safety is essential to protect public health, build consumer trust, and comply with legal standards. Any lapse can lead to legal penalties, brand damage, and loss of customer confidence.
Q8. What lessons can other businesses learn from this case?
Ans. Other businesses can learn the importance of regular internal audits, staff training, strict inventory management, and proactive compliance with regulations. Building a strong safety culture can help prevent legal and reputational risks.

On June 2, 2025, the Food and Drug Administration (FDA) of Maharashtra took decisive action against Kiranakart Technologies Pvt. Ltd., the parent company of the popular quick-commerce platform Zepto. The FDA suspended Zepto’s food licence for its Dharavi warehouse, citing serious violations of food safety and hygiene norms. This article explains the entire incident, the legal provisions invoked, the nature of the violations, and the consequences for Zepto, all in simple and clear English.

The recent suspension of Zepto's Dharavi warehouse license by the Maharashtra FDA highlights the importance of adhering to food safety regulations. The inspection uncovered severe violations, including the presence of expired food items, fungal growth, and unsanitary storage conditions, posing significant health risks to consumers. FSSAI Compliance with the Food Safety and Standards Authority of India (FSSAI) guidelines is essential for all food business operators. It ensures that food products meet stringent safety and quality standards, thereby safeguarding public health and maintaining consumer trust. For businesses seeking assistance in navigating FSSAI compliance requirements, Compliance Calendar LLP offers expert FSSAI consultancy services. Their team can guide you through the registration, licensing, and compliance processes to ensure your operations meet all necessary food safety standards

Background of the Inspection by FDA

The surprise inspection was carried out on May 31, 2025, under the direction of the Minister of State for FDA, Yogesh Kadam. Food safety officer Ram Bodke, supervised by Joint Commissioner (Food) Mangesh Mane, led the investigation. The FDA officials conducted this inspection to ensure that all food storage and handling at the Dharavi facility met the necessary safety standards. This type of surprise inspection helps uncover hidden risks that can affect consumer health.

Findings of the FDA Inspection

The FDA inspection report revealed multiple severe violations. Inspectors found food items visibly affected by fungal growth, which makes these products unsafe for consumption. Food stored near stagnant, clogged water created a breeding ground for pests, increasing the risk of contamination. Cold storage units were also not functioning at the required temperature, endangering the freshness and safety of perishable goods. The facility's floors were damp, dirty, and littered with food products stored directly on the ground, which is a clear violation of hygiene protocols.

Expired Products Found in Stock

Another alarming discovery was the presence of expired food items mixed with fresh inventory. This failure to segregate expired goods violates basic principles of shelf-life management and poses a serious risk to consumers. Expired food can carry harmful bacteria and toxins, and selling or storing them violates food safety laws. The FDA's discovery of such practices pointed to gross negligence by the warehouse management.

Legal Action Taken Against Zepto

Following the inspection, Assistant Commissioner (Food) Anupamaa Balasaheb Patil issued an immediate suspension order for the facility's food business licence. The action was taken under Section 32(3) of the Food Safety and Standards Act, 2006, and Regulation 2.1.8(4) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011. These provisions empower the authorities to suspend or cancel licences where violations threaten public health.

What is Section 32(3) of the Food Safety Act?

Section 32(3) of the Food Safety and Standards Act, 2006 allows the authorities to suspend a licence if the food business operator fails to comply with the conditions set under the law. This section is critical for enforcing accountability, as it empowers regulators to act swiftly in cases where public health is at stake. The suspension stays in effect until the food business operator takes corrective measures and meets all compliance standards.

Importance of Regulation 2.1.8(4)

Regulation 2.1.8(4) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 focuses on the compliance obligations of licensed food businesses. It sets out the responsibilities of businesses to maintain hygienic practices, ensure proper storage, and uphold all safety standards. Violation of these regulations can lead to licence suspension, legal penalties, or even permanent closure of the facility.

Zepto’s Response to the Suspension

In response to the FDA's action, Zepto issued a statement emphasizing its commitment to food safety and hygiene. A Zepto spokesperson said, "At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable. We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance." This shows that the company is taking the matter seriously and is working to rectify the identified lapses.

Corrective Measures Being Taken by Zepto

Zepto has promised to take all necessary corrective actions to address the violations identified by the FDA. This includes deep-cleaning the warehouse, ensuring proper temperature control in cold storage, discarding expired and contaminated products, and training staff on food safety protocols. The company is also revisiting its inventory management practices to avoid similar issues in the future.

When Will Zepto Resume Operations?

The FDA has made it clear that the licence will remain suspended until the company achieves full compliance and receives formal clearance from the licensing authority. This means Zepto must demonstrate that it has resolved all the safety and hygiene issues before it can restart operations at the Dharavi warehouse. The timeline will depend on how quickly Zepto can implement the required changes and satisfy the authorities.

Consumer Health and Public Safety at the Forefront

FDA Commissioner Rajesh Narvekar, IAS, stated, "Protecting consumer health remains our top priority. We will continue regular inspections and take strict action wherever violations are found." This statement highlights the FDA's focus on safeguarding public health by ensuring that food businesses meet all legal and safety requirements. Consumers rely on regulatory bodies like the FDA to ensure that the food they buy is safe and free from contamination.

Implications for Zepto’s Reputation

While Zepto has responded proactively, the suspension of its food licence at one of its major warehouses may affect its brand reputation. Quick-commerce businesses like Zepto depend heavily on consumer trust, especially when it comes to food items. Any lapse in safety can lead to loss of customer confidence, refusal media coverage, and potential financial losses. Zepto must act swiftly to restore its credibility.

Impact on Zepto’s Supply Chain

The Dharavi warehouse plays a crucial role in Zepto’s Mumbai operations. With its licence suspended, the company will face disruptions in its supply chain, affecting order fulfilment, delivery times, and overall customer experience. Zepto will need to find alternative supply routes or rely on other warehouses to meet demand until the Dharavi facility resumes operations.

Legal Obligations Under the Food Safety Act

Every food business operator in India is legally bound to comply with the Food Safety and Standards Act, 2006. This includes maintaining hygiene, ensuring proper storage, segregating expired items, and following cold storage requirements. Failure to comply can result in penalties, suspension, or cancellation of the food business licence. These legal obligations are designed to protect consumers and maintain food quality standards across the industry.

Lessons for Other Food Businesses

The FDA’s action against Zepto serves as a warning to other food businesses. Regular internal audits, proper staff training, and strict adherence to safety norms are essential to avoid regulatory action. Businesses must understand that shortcuts in food safety can lead to legal, financial, and reputational damage. The case of Zepto highlights the importance of building a strong compliance culture.

Future Inspections and Enforcement

The FDA has indicated that it will continue to conduct regular inspections across food businesses in Maharashtra. This proactive approach ensures that businesses remain vigilant and do not become complacent about food safety. For companies like Zepto, regular inspections are an opportunity to demonstrate their commitment to maintaining high standards and rebuilding trust.

Conclusion

The suspension of Zepto's Dharavi warehouse licence is a clear reminder that food safety violations carry serious consequences. From visible fungal growth on food items to improper cold storage and the presence of expired products, the violations uncovered by the FDA posed a direct risk to public health. Zepto’s swift response and cooperation with the authorities show its intention to fix these issues, but the path to regaining its licence will require full compliance with regulatory requirements.

As the FDA continues its enforcement efforts, food businesses across the country must prioritize safety and hygiene to protect both their customers and their reputation. The incident serves as an important lesson on the need for constant vigilance, proper training, and adherence to legal standards. Only by doing so can businesses ensure they meet their obligations under the Food Safety and Standards Act and provide safe, high-quality food to consumers.

FAQs

Q1. Why did the FDA suspend Zepto’s Dharavi warehouse licence?

Ans. The FDA suspended Zepto’s Dharavi warehouse licence due to serious food safety and hygiene violations, including fungal growth on food items, improper cold storage, and the presence of expired products. These conditions posed a direct risk to consumer health.

Q2. Under which law was Zepto’s licence suspended?

Ans. The licence was suspended under Section 32(3) of the Food Safety and Standards Act, 2006, and Regulation 2.1.8(4) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011. These legal provisions empower the FDA to act against violations.

Q3. What corrective actions is Zepto taking?

Ans. Zepto is conducting an internal review, discarding expired and contaminated products, deep cleaning its warehouse, fixing cold storage issues, and providing staff training on food safety practices. The company is also working closely with authorities to regain compliance.

Q4. How long will the licence suspension last?

Ans. The suspension will remain in effect until Zepto fully complies with all food safety norms and receives clearance from the licensing authority. The timeline depends on how quickly Zepto can resolve the violations.

Q5. What impact will this have on Zepto’s operations?

Ans. The suspension affects Zepto’s supply chain in Mumbai, potentially causing delays in order fulfilment and delivery. The company may need to reroute operations through other warehouses to continue serving customers.

Q6. How does the FDA ensure food safety in India?

Ans. The FDA conducts regular inspections, surprise checks, and enforces compliance with the Food Safety and Standards Act, 2006. It has the authority to suspend or cancel licences if businesses fail to meet safety requirements.

Q7. Why is food safety so important for businesses?

Ans. Maintaining food safety is essential to protect public health, build consumer trust, and comply with legal standards. Any lapse can lead to legal penalties, brand damage, and loss of customer confidence.

Q8. What lessons can other businesses learn from this case?

Ans. Other businesses can learn the importance of regular internal audits, staff training, strict inventory management, and proactive compliance with regulations. Building a strong safety culture can help prevent legal and reputational risks.